Wednesday 29 August 2018

Dow: How much higher?

Lucifer was loved in heaven the day before he fell.
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Reference: SP500 Cycle Review 

The stock market angels today are: Amazon (AMZN), Apple (AAPL), NetFlix (NFLX) and Google (GOOGL). These stocks are loved by the masses, so much so there is a sellers strike. There is no supply of stock float, as no one is selling hence prices rises month after month. 

No ones knows when this ends, or why. Below we use history as our guide. Yes history may not repeat exactly but it sure does rhyme. The major point of the chart is the 'easy money has been made', any further gains is just 'small change' with a very high risk attached to it.

Investor capital has increased many times since March 2009, the focus now must be to keep some it, by either paying down debt or investing in other non correlated (or contrarian) asset classes. A  change is coming. The future expected market correction will be the worlds first high frequency trading sell off. Makes you wonder what this would look like. Hmmmm, what to do ... run away!

The Dow inflation adjusted monthly chart, with a DPO.


Dow




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